Weekly Market Report 12/2/13

This Week’s Headlines:

Gold
Tax Loss Strategy
Silver
Pre-order 2014 First Strike Silver Eagles
Recommended Investment Commitment and Diversification

GOLD

Gold established a new trading range overlast week’s holiday shortened sessions.The Gold trading range had a low of $1,226 and a high of $1,258 per ounce. The Asian volume increased dramatically when Gold was trading near the lows, while domestic selling increased as Gold traded near the highs. For the month of November Gold decreased $73 per ounce, closing last Friday at $1,250.40 per ounce.

$1,250 per ounce is a very important support level; for Gold to stay short term bullish, it needs to be above that level. If Gold is unable to sustain itself above the $1,250 per ounce level this week, Gold’s short term direction will be clearly lower. This morning Gold tested the recent $1,226 low on heavy volume. Remember, long term major Gold support is at the $1,200 per ounce level, and there is an excellent chance that Gold will test that level by year end, before climbing higher. Gold reached a low of $1,179.80 per ounce on June 28, 2013 before rallying sharply on high volume, then reaching a high of $1,438 per ounce within two months.

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Tax Loss Strategy

After 11 straight years of Gold increasing in value, it appears that for 2013 we will see the price drop. If the Gold price closes below the December 31, 2012 price of $1,645 per ounce by year end, it will break this 11 year streak. This gives long term Gold and Silver investors the opportunity to use their losses (in Gold or Silver) to offset long term capital gains from other investments.

How does it work?
If you have sold profitable stocks, real estate, or other assets this year and owe income taxes on the capital gain profits, you can sell enough Gold Maple Leafs, Eagles, or Krugerrands (which have declined from your original cost) to offset your profits thereby eliminating your capital gain liability. Then, 31 days after you have sold your Gold, you can buy back your Gold bullion coins, or buy other pre-1933 low premium Gold coins that can provide you better privacy. This strategy also works for Silver bullion purchases.

I recommend that you take a look at your capital gain liability and the cost basis of your Gold and Silver bullion and coins, talk with your accountant, and then call me.

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SILVER

Silver closed between $19.68 and $20.02 per ounce last week, on average to light trading. $20 per ounce for Silver is a key support level and battle between the bulls and bears continues to drive the market. Many professional floor traders are shorting rallies, they are selling Silver (short) every time it approaches $20 per ounce to cover their short sales under $19.70 per ounce. Remember, Silver did reach a low of $18.17 per ounce on June 28, 2013 before rallying sharply on heavy volume, and there is a possibility of Silver seeing that level again before year end.

At the end of November the U.S. Mint sold 41,475,000 1oz Silver Eagles, an all-time record, and we still have another month to go. It isn’t only the U.S. Mint reporting record sales of physical Silver, many retailers around the globe have been reporting 20-30% increases in Silver investment products for 2013.

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Pre-order 2014 First Strike Silver Eagles

Stuppler & Company is now accepting orders for 1st Strike U.S. 2014 Silver Eagles at only $4.24 over spot in lots of up to 499, and $3.99 over spot for 1st strike in the Green Monster box (500 coins).

You can lock in today’s low Silver price for delivery early in 2014. Call or email me at 888-454-0444 or [email protected].

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Recommended Investment Commitment and Diversification:

Precious Metal commitment: Minimum of 40% of investment capital

Diversification: Gold 50%, Silver 45%, Platinum & Palladium 5%

Diversification includes 50% in long term investment quality rare coins and 50% short term bullion products

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REMEMBER THE BLOG

If you want to be updated on what is happening in the Gold, Silver, and Rare Coin markets any weekday, our company offers a daily blog Monday through Friday at www.stupplerblog.com

All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of the Stuppler & Company’s knowledge at this time. Stuppler & Company disclaims and is not liable for any claims or losses which may be incurred by third parties while relying on information published herein. Individuals should not look at this publication as giving finance or investment advice or information for their individual suitability. All readers are advised to independently verify all representations made herein or by its representatives for your individual suitability before making your investment or collecting decisions.